"Why am I getting adverse action letters after buying a new car? "

"After getting approved for financing for my new car from one lender, I am now getting letters from multiple other lenders that I didn’t apply to, which say my financing was rejected.

Financing was worked out at the dealership and I have had the car for a few weeks now. Should I be worried that someone stole my information, or is this normal?


“It seems that the dealer applied to multiple lenders at the same time and went with the one that approved you. The others are just now getting around to sending out the legally required letters explaining why you were denied the loan.
Although you should always keep an eye on your credit, you shouldn’t really worry about this. It is normal for dealers to mass apply to multiple lenders to get you financed at the best rate possible.
Also, since your credit score was pulled by all of those lenders at the same time, your score should only show one hard inquiry, which will not cause long-term damage your score. “
Johnny Puckett
Answered on May 11, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.

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